Suppose you invest $100 in a bank account, and five years later it has grown to $134.39.

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Suppose you invest $100 in a bank account, and five years later it has grown to $134.39.
a. What APR did you receive, if the interest was compounded semiannually?
b. What APR did you receive if the interest was compounded monthly?

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Corporate Finance

ISBN: 978-0134083278

4th edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Nov 24, 2016 08:07 AM

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Suppose you invest $100 in a bank account, and five years later it has grown to $134.39.

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The EAR can be calculated as follows a U...View the full answer

Corporate Finance

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